Low interest rates may not be as bad as you think

According to the chief economist for Chase, Anthony Chan, low interest rates are a main catalyst for a healthy job market and slow steady growth. Because of low rates, labor markets are tightening and the country is seeing more people join the labor force. He predicts that productivity, labor force growth and possibly even earnings will improve in 2017. He makes the comment that earnings for this year will most likely be negative but he foresees positive growth in the future since we will not have to deal with the headwinds of energy or the headwinds of a stronger dollar.

This article also mentions the opinion of the UBS portfolio manager, Alan Rechtschaffen. He believes that the low-interest environment could predict a positive stock market. He expressed his concern about the upcoming presidential election because the next president will need to pay attention to the stock market, especially when it comes to government spending and global trade. He makes the comment that the participation of open trade has become a front-burner item and he says that whoever our president ends up being, will have to be a leader who is going to be able to work with Congress and work to move this economy forward.

http://www.cnbc.com/2016/10/10/low-interest-rates-may-not-be-as-bad-as-you-think.html

Yes, Ford Is Building Plants in Mexico. No, It’s Not Cutting U.S. Jobs.

  In this article, Ford is talking about the construction of their new plant in Mexico, and how it isn't going to affect U.S. jobs. Trump is referenced in this article multiple times saying that this isn't a good idea, and that the U.S. needs jobs, especially in Detroit, little does Trump know the building of this plant will actually not cut U.S. jobs. Many Auto companies including BMW, GM, Volkswagen, Honda, and Toyota are starting to build their factories in Mexico, because other countries cannot compete with their low wages and high productivity.

  After reading this article you wonder how moving multiple plants like this out of the U.S. and into Mexico will affect immigration into the United States. I look at this and think that if immigration into the United States goes down, then more people that live in the U.S. legally will be able to find work, which would hopefully lower our unemployment rate. It will also be interesting to see if other companies in other industries start doing this, because of the low wages and high productivity.



Link: http://www.msn.com/en-us/money/companies/yes-ford-is-building-plants-in-mexico-no-it%e2%80%99s-not-cutting-us-jobs/ar-AAj796r